Poultry Industry Calls for Further Reduction in Corn Ethanol Blending

US - The National Chicken Council (NCC) has called for further reductions in the amounts of corn bioethanol required in transport fuels for next year, due to the effects of these rules on feed prices for chicken producers.

“NCC believes the Environmental Protection Agency (EPA) is properly proposing to use its authority under the Clean Air Act to reduce ethanol blending requirements below the statutory levels,” said NCC President Mike Brown in comments submitted to the agency in response to their proposed renewable fuels volume requirements.

“However, NCC believes the volumes proposed for 2017 are overly aggressive and based on faulty assumptions about the fuel market and thus should be further reduced to limit the disruptions to the corn market and nation’s feed supply.”

The NCC said that the impact of the food versus fuel pressure on feed supplies due to the ethanol requirements has been severe. Since the RFS was enacted, chicken producers alone have faced $53 billion in higher actual feed costs due to the RFS.

“Given the unpredictable weather right now throughout the Corn Belt and the volatility in the corn market this past week, it is obvious that chicken producers are again only one supply shock, flood or drought away from high volatile corn prices as in 2009 and 2012,” Mr Brown continued.

“Where chicken producers have to adjust production and limit flocks due to corn prices, the RFS protects ethanol producers from having to make the same type of adjustments.”

Mr Brown also said that ethanol exports were putting extra pressure on corn prices.